WELCOME TO THE HERF!

The Blockchainsmoker
Tallinn, Estonia
INTRODUCTION
The Blockchainsmoker – NFTs on Cardano for Exclusive access to hand rolled Premium Cigars.

The Blockchainsmoker is both a cigar club and a collection of 2400 NFTs on the Cardano blockchain.
Each NFT is, in addition to being a beautif ul piece of art, a cigar club membership token. The dif f erence
between this NFT collection and a "normal" one is here you get access to purchase instantly collectible,
one-of f concept Limited Edition, Ultra Limited Edition and Special Concept cigars f rom many dif f erent
brands around the world. These cigars are exclusively made f or, - and sold to The Blockchainsmoker NFT
holders.

The Blockchainsmoker builds a bridge f rom the crypto world with its highly exclusive NFTs, into the physical
world giving access to high quality, premium, Limited Edition cigars made by elite brands f rom across the
world.

How did it all start? It was in the beautif ul D’Boiss cigar lounge in Tallinn, during a lengthy discussion over
three – as always – excellent Casdagli Cigars, one in the hand of each of what is now the three co-f ounders,
Jeremy, Martin and Rune (more on the last page below). The three cigar af f icionados quickly realised they had
all the components needed f or the project: The principal concept which came f rom Rune, the vast connection
network into the cigar world through Jeremy, and the technical blockchain knowledge through Martin. Both
Martin and Rune are blockchain enthusiasts with solid knowledge about the space. Last but not least; a wealth
of passion sparked synergies f rom all three! Together, all that will make this project something very special;

An NFT cigar club where aficionados can enjoy exclusive access to smoke masterful works of cigar
art, in the form of one-off edition cigars from some of the best companies around the world.

Many people in the crypto industry are avid cigar smokers. One The Blockchainsmoker cares a lot about is
of course the man who will host our NFTs on “his” decentralised Cardano network, Mr. Charles Hoskinson.
@Charles, thank you f or your part in building an amazing, f uture-proof network! We are looking f orward to
enriching the Cardano ecosystem and building a strong and lasting bridge between NFTs and Cigars!

Let us get closer and more personal here, because connection and trust are built that way, so hencef orth, we ref er
to ‘you’ and ‘us’ instead of being f ormal.

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PROBLEM
The world of NFTs is more or less disconnected from the world of cigars. Limited Edition cigar
concepts and NFTs are a perfect match, but nobody has been able to create a working cigar club
concept that is designed for the NFT industry.

There simply does not exist a pure cigar brand that exclusively of fers quality cigars with f eatures relating to
Blockchain technology, designated to those who understand the ref erences to that space; a brand of f ering a
solution where the crypto and cigar lovers can get the best of both worlds.

SOLUTION
A unique concept: a cigar club for exclusive access to one-off concept, crypto themed, premium
cigars from across the world. All through membership NFTs.

We aim to establish a highly regarded NFT cigar club, of f ering members coveted Limited Edition and
collectible cigars. We have everything needed in order to make this happen:
♦ A wealth of business experience within our team of f ounders, all three having been part of creating
successf ul companies
♦ a co-f ounder who is also the f ounder of Casdagli Cigars, Jeremy Casdagli
♦ A concept that can create value both f rom the cigars and the NFTs
♦ In depth knowledge of the cigar market
♦ Vast network access into the cigar industry
♦ True passion f or, and the knowledge to consistently ensure an of f ering of the highest quality cigars
♦ Access to (near) worldwide cigar distribution
♦ Expertise f rom blockchain and NFT solutions

We call our consensus mechanism Proof -of-Smoke (PoS). We are of course joking, however it illustrates one
of the purposes of the project, to bring together elements of the two worlds; Cigar and Crypto. Each of our
cigars will f eature something that in some way relates it to the crypto world.

We believe that reaching out to the two worlds with an of fer like this will create a lot of attention which in turn
will put buying pressure on the low NFTs supply. When you smoke a cigar f rom us, you are given access to
something coveted by many, yet available to f ew.

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BEFORE WE MOVE ON, LET’S ADDRESS
THE ELEPHANT BEAR IN THE ROOM
Crypto winter is upon us. Why are we not worried?

There is no doubt that the current situation in the crypto market is rather dire. Most tokens are down over
80%. There only needs to be a f ew words said f or crypto scandals in 2022: Celsius, Luna, FTX, Genesis,
Gemini… we could go on and on. On top of that – a general market recession lurks in the shadows. Yet, we
are not worried. Why?

The Blockchainsmoker project is dif f erent f rom other NFT projects because the value does not only come
f rom the NFT collection, but also the value they represent in the physical world. The added value is tied to
what the “membership” gives you access to , namely the cigars, and that is uncorrelated with the current
volatility in the crypto market. Our NFTs also carry the value of what it represents; access to take part in
something remarkable within the world of cigars. Utility NFTs are just starting to hit the market and they are
here to stay. We will be here whichever way the market swings, letting people smoke the best cigars, tailored
to the crossover between the cigar world and the crypto world.

And by the way – the cigar business is booming these days!

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WHY DOXXED?
We are running a business, not rugging a business.

We do respect teams that decide to stay anonymous , like our incubators in The Ape Society, and we f ully
acknowledge there are many good reasons f or making that choice.

In our case, we decided straight of f the starting line that we are going to be a f ully doxxed (publicly known as
opposed to an anonymous) team. The nature of adding a layer – namely the cigar business - on top of the
NFT collection would either way make it more dif f icult to stay anonymous. Even if it would have been easy,
our decision would still remain the same. All three f ounders are experienced businesspeople, and we are
used to being exposed to our clients. Our main objective is creating a community of cigar lovers, make it a
f amous one and to of f er them access to something exceptional. Being doxxed makes this a lot easier,
especially since we have Jeremy on our team with his reach into the cigar world.

Launching the NFTs is the f irst stage of the journey. Next comes building up a great community, then
creating excitement around the cigars we launch and the brands we launch them with. Next is actually
launching the cigars and make sure we are all excited to share cigar smoking experiences with each other.
All through this, what we believe will make us successf ul is working with you, the community, to constantly
develop, improve, and add value to the cigar club concept. That way we create the best possible experience
together.

We don’t mind being held accountable and believe that transparency is the best starting point to prove your
intentions are good and to build trust in the community, as should be the case anywhere else in the business
world.

We also want to meet our members, so when in Tallinn, please let us know and we’ll do our best to have a
cigar with you in our f antastic lounge in D’Boiss.

CASDAGLI CIGARS IS OUR MAIN CIGAR PARTNER

Quality, uncompromising cigars consistently ranked amongst elite brands.

Bef ore we go into the NFT distribution model, we want to make sure to underscore the quality level of cigars
we can of f er NFT holders. This deserves a lot of attention as it lays the f oundation of our premium quality
of f ering.

The Casdagli f amily heritage is so interesting and so rich with history that books have actually been written
about it. I strongly recommend having a good look around the Casdagli Cigar webpages
(https://casdaglicigars.com/). Founded by Jeremy Casdagli, Casdagli Cigars are loved and f ollowed by a
rapidly growing community due to ever increasing popularity. People recognise quality when they
experience it. Jeremy is a man of signif icant stature in the cigar world, and we are excited to have
Jeremy Casdagli as one of the three founding members of The Blockchainsmoker.

Some background on the brand:

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“The Casdagli Cigars brand has grown from a small regional brand to an almost worldwide available cigar. The
history of Casdagli Cigars is huge, even though the brand is still quite young.
Casdagli Cigars was founded in 1997, but the history starts in the 1800s when the Casdagli family started trading
grain, tobacco, cotton, and breeding of Arabian horses. The continuation of the family tradition in the luxury goods
trade is demonstrated by the adoption of Colossus of Rhodes as the family trading symbol on the brand logo.

The original production of Casdagli Cigars in 1990s was produced in Cuba, 100% hand rolled by the master torcedor
Carlos Valdez Mosquera – simply one of the best there has ever been. The whole production was initially very small
– only 500-1,000 cigars a month destined for the London market. Own label cigars were made for some of the top
establishments including The Rib Room at the Carlton Park Tower and The Capital Hotel. Casdagli Cigars also
became the choice for certain celebrities and members of the Saudi Royal Family.”

(Source: https://casdaglicigars.com/heritage/the-story-of-casdagli-cigars/)

Rest assured knowing this is the brand joining f orces with The Blockchainsmoker to provide NFT holders
exclusive access to The Blockchainsmoker experience!

Casdagli cigars are world class. Immerse yourself in reviews here if you like:
https://casdaglicigars.com/category/reviews/

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THE APE SOCIETY IS OUR NFT INCUBATOR
We are proud and excited to be part of The Ape Society’s incubator programme, “The Factory”
(https://factory.theapesociety.io/).

Af ter getting in contact with The Ape Society, both their team and ours quickly realised this partnership was
“meant to be”. They soon of f ered us to become part of their recently launched incubator programme. We
accepted their of fer, and truly believe this gives us an ideal starting point!

It is a well-known f act that the leading project on the Cardano network, The Ape Society, have created a
f antastic community on the Cardano network. Their artwork is beautif ul, and the concept is miles ahead of
other NFT projects. The thing that really stood out f or us was the way they think of adding value in everything
they do. We admire how The Ape Society build and expand their business by constantly adding new f eatures
to their society, where ultimately everyone is rewarded. The Blockchainsmoker team stands f or similar values
and principles, and we are truly excited to be part of this incubation programme.

The main f eatures of f ered are:

1. Minting powered by Anvil where our mint will run through a reliable, vetted platf orm and process that
has the trust of the community.
2. Mentorship as we access the expertise of Ape Force One, the team behind The Ape Society .
3. Exposure through support f rom one of the strongest crypto communities which will give us a signif icant
head start in our venture.

NFT DISTRIBUTION
We are creating profile picture type NFTs for our collection, all unique. Although our collection is
conceptually vastly different, we are very much inspired by how The Ape Society has made their
beautiful collection and overall concept, they are seen as leaders in creating beautiful artwork.

Only 2400 membership NFTs will ever be minted. Of those, there are three levels, starting with the top one:
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200 VIP Inner Lounge
200 VIP Lounge
2000 Club Lounge

Here is an overview of the dif f erent levels and privileges that comes with each one.

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A f ew things to note regarding NFTs:

♦ Both Membership and airdropped NFTs can be sold on the open market
The membership f ollows the NFT owner, and all rights are lost once the NFT changes owner. The air-
dropped NFTs can be traded f reely on the open market until the date of expiry .
♦ Airdrop allocation NFTs - according to membership level - each time a new cigar is launched
Providing a cigar launch is made available f or the NFT holder’s cub membership level, each holder of a
membership NFT will be airdropped at least one NFT f or a specif ic allocation of cigars they can purchase
when a new cigar is launched. One airdropped NFT will typically - but not necessarily always - relate to one
box of cigars.
♦ the differences between Limited Edition, Ultra Limited Edition and Special concepts?
• Limited editions typically have a maximum production of 24,000 30,000 cigars
• Ultra limited Edition typically have a maximum production of anywhere f rom 2,000 to 10,000
cigars
• Special Concepts are typically 2,000 or less cigars but may include additional components
than cigars
♦ Cigar allocation sizes for airdrop NFTs
Allocations will vary based on the type of launch as per the point above. All type of launches will likely
have 5 or 10 cigars per allocation, but there may be exceptions.
♦ Unredeemed airdrop NFTs will have an expiry date – typically 2 months after each airdrop
In order to be able to keep a sensible warehouse storage level, a set expiry date will be implemented f or
airdropped NFTs. Each NFT will have this printed on them and they will be auto updated saying
‘EXPIRED’ once the expiry date is met, rendering them unusable. Typically, the expiry will happen 2
months af ter a cigar allocation airdrop. The period may be increased or shortened on a per-launch basis.
♦ All NFTs will be verified on The Blockchainsmoker app before transactions can be initiated
We are supplying a custom-programmed solution to check and verif y that holders have valid NFTs that can
be used f or purchasing cigars.
♦ Cigars from unredeemed airdrop NFTs may be offered to other NFT holders
In the event that allocation NFTs expire (remember they can also be sold on the open market to non-members),
The Blockchainsmoker may issue new NFTs with similar restrictions as the membership airdrops. It would
typically be of fered on a First Come First Served basis and would be well communicated bef orehand through
our media channels
♦ There will be a royalty fee of 7% on membership NFTs
The 7% f ee pertains to any The Blockchainsmoker membership NFT issued.
♦ There will be a royalty fee of 10% on membership NFTs
A 10% f ee is taken f or all sales of allocation NFTs, including airdrops. There is a signif icantly bigger
administration overhead of these NFTs as The Blockchainsmoker will be doing these mints in-house.
Allocation NFTs have a completely separate policy number than that of the main collection and there is
also an expiry date connected with each one, requiring us to update each of them accordingly.

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OUR COMPETITORS
We are the first!

We are the f irst company to launch a concept like this. We have the f irst mover advantage and that normally
sparks some attention. United Cigars launched an NFT cigar in 2021, simply a picture of a cigar which was
not put into production. This is not competition, but we mention it as a curiosity as they seem to be the f irst
to launch anything into the NFT space f rom the cigar world.

The only really signif icant cigar NFTs we have come across have come f rom La Flor Dominicana which had a
concept where, by selling 7 NFTs, the NFT owners can buy up to 70 cigars per month f or as long as they hold
the NFT. However, it is only one cigar out of their whole assortment and there are only 7 people or businesses
able to buy the NFTs through separate auctions. We do not regard this as competition, but we applaud their
concept. Their experiment was hugely successf ul, and they sold the 7 NFTs f or a total of ca. $614,000. At
least six out of the seven were sold to commercial buyers. There was one anonymous buyer so there is an
outside chance they could be private.

Our concept is completely dif ferent and something that over time will be much bigger. We aim to attract the
best brands in the world to of f er special one-of f editions of the highest quality cigars only of f ered to our club
members. Our members will have the chance to build up a fantastic collection of unique cigars!

MARKET FIGURES
Many people, few NFTs.

Any cigar smoker that somehow identif ies themself with the crypto society is part of our “low hanging f ruit”
market. Those who smoke cigars but are not in the crypto market we target to convert into crypto
enthusiasts, by giving them a good reason to do so. Here are some base numbers to make assumptions
f rom. Let us start with the Cigar world and use USA as example, one of our key target markets:

Percentage of U.S. adults who smoked cigars in 2020:

3.5% of all adults

6.3% of adult males
0.8% of adult f emales
(Source: https://tinyu rl.c om/2p8v 8w5m)

According to the United States Census Bureau, the adult population was 258.3 million people in 2020.

(Source: https://tinyurl.com/2p8cwvep)

If we then look at the number of people involved in the crypto market f rom a survey conducted in March of
2022, we f ind that at least 21% of people in USA have at least used or invested in crypto once.
(Source: https://tinyurl.com/ynxtza5a)

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21% of 258.3 million people is 54.24 million people that are already in the crypto market.

3.5% of these 54.24 million means there are approximately 1,890,000 people in the direct target group.
We know that the crypto world is predominantly male (around 2:1) so the crossover percentage is in our
f avour in terms of market numbers.
We need only 2400 of all these. That means we have a minimum of 788 people to target per NFT only in
the US. Then we can add all the other potential markets, Europe, Asia... the world is our proverbial oyster.

In conclusion, the market is much bigger than what we need in order to be successf ul.

MARKET REACH
Targeting the overlap between two worlds; Cigar and Crypto

We are creating a wealth of publicity around the brand , yet we will keep membership NFTs exclusive with a
relatively small NFT collection of only 2400. Publicity will be coming f rom both the crypto community and the
cigar community. As the numbers have already shown us, the number of enthusiasts culminating in the
common space is more than large enough. That is our prime market which we will target f rom b oth the cigar
and the crypto side. We believe it is easier to recruit f rom the crypto side to start with as we have a vast
network which we can reach through The Ape Society incubation programme. We also aim to “convert” non-
crypto people by providing easily available crypto onboarding user guides. We want to enrich the Cardano
network’s span by bringing more of the cigar herf into the NFT space.

The cigar world

With Jeremy Casdagli on our team, we have a distinct advantage of attracting publicity in the cigar space.
We also have a direct route to contact and attract cigar producers around the world. Jeremy’s name is
synonymous with quality and respect in the industry.

The NFT angle is likely to give us extra attention f rom the cigar press, something we want to take f ull
advantage of , and we have a good network of contacts here within the biggest cigar publications. A press
release will come out closer to the Genesis minting event. Casdagli Cigars will announce The
Blockchainsmoker cigar club across their social media, targeting those who overlap with interest in crypto
and NFTs.

The crypto world

As we have explained in the chapter about The Ape Society ’s Factory, this is by f ar the most signif icant
publicity campaign. Furthermore, upon launching The Blockchainsmoker brand through The Factory, we are
likely to get attention f rom dif f erent media channels.

A “mini economy”
Each time we launch cigars, NFT holders – based on their access level – receive airdrops that f unction as
"vouchers" where they can redeem them to buy the cigars. If they do not intend to buy the cigars, they can
sell or gif t the allocation to someone else. The buying pressure could potentially be quite strong f or certain
cigars, especially the ones where only the top tier or top two tiers have access , but also when we launch
Limited Editions f rom bigger brands with many f ollowers wanting to get their hands on something unique.
Over time, the Membership NFTs may theref ore become a source of income.

We can hardly wait f or the Genesis Mint and to launch the f irst cigar, come and join us on the journey!

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CORE TEAM HISTORY AND BACKGROUND

Operations

Toro

All things Cigar

Profile
https://casdaglicigars.com/
Favourite Vitola
Lancero

Martin Grüner - The Cryptographer

NFT and Blockchain
LinkedIn Profile
https://www.linkedin.com/in/gryner/
Favourite Vitola
Toro

www.theblockchainsmoker.com
https://twitter.com/theblockchainsmoker
https://www.instagram.com/theblockchainsmoker